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Contr olling Appar ent Losses—Unauthorized Consumption 257
previous structure provided unlimited water for a flat fee. Such programs offer water
utilities much stronger and more direct methods to provide reasonable service, but only
with the guarantee of receiving payment for the service. In a structure such as this, the
water utility has a much stronger level of control over unauthorized consumption. In
fact, such control represents a proactive stance by the water utility to optimize its rev-
enue stream and guard against unauthorized consumption. This is a dramatic depar-
ture from the purely reactive controls that most water utilities in the world employ
against unauthorized consumption.
The experience of Johannesburg Water is not without controversy, however as sev-
eral advocacy groups have joined to support several customers in legal action against
the plan, largely on the basis that the volume determined for the free allotment is too
small for large, poor households who are ultimately suffering several weeks of no water
4
service each month once their free allotment is consumed. This project will serve as an
interesting early test case in an attempt by a water utility to institute stronger, inte-
grated technology and policy that balances the economic, social, and environmental
concerns surrounding the provision of safe drinking water.
Still it is notable that smart technology exists to provide utilities with more control
over their services than ever before. This technology gives utilities the tools to operate
efficiently, collect appropriate revenue, and provide good customer service. Water is
unique in the utility world in that it is the only utility service ingested in the human
body and is therefore essential as life-sustaining. Given this, it cannot be regarded in the
same vein as other utility services, as all people must have water service. It is up to the
managers of water utilities to proactively control losses and optimize revenue capture,
but to also appropriately recognize those segments of society that are truly in need, and
offer the appropriate discounts or other accommodations that ensure life-sustaining
service.
References
1. Villegas, Samantha. “Hydrant Use: Balancing Access and Protection,” AWWA
Opflow. Denver, Colo.: October, 2006.
2. Itron, Inc., Media Release. “Itron Announces Prepaid Metering Contract,” 2007.
Available Online: www.itron.com/pages/news_press_individual.asp?id=itr_
016305.xml. [Cited: 19 December 2007.]
3. Echelon Media Releases. “Echelon Announces World’s Most Advanced Residential
Utility Meters,” 2006. Available Online: www.echelon.com/Company/press/
newmeters.htm. [Cited: 31 January 2006.]
4. Right to Water, Media Summary. “Legal Challenge over Water Policy in Poor
Community in Phiri, Soweto,” 2006. Available Online: www.righttowater.org.uk/
code/legal_6.asp. [Cited: 12 January 2006.]